RS: Roadshow/ CE: Client Event/ TS: Trade Show

ASPAC-Market Update- Q1 2017

Mark Your Diary

Date / Type / Days / Location / Segments
08 May 2017 / RS / 5 / Auckland/Wellington/Christchurch / Corporate/Leisure/MICE
05 Jun 2017 / RS / 5 / Japan / Corporate/Leisure/MICE
19 Jun 2017 / TS / 4 / ILTM Shanghai / Corporate/Leisure/MICE
11 Jul 2017 / RS / 4 / Singapore/Kuala Lumpur / Corporate/Leisure/MICE
24 Aug 2017 / RS / 2 / Hong Kong / Corporate/Leisure/MICE
28 Aug 2017 / RS / 3 / Seoul/Busan / Corporate/Leisure/MICE
11 Sep 2017 / RS / 4 / Sydney/Melbourne / Corporate/Leisure/MICE
20 Sep 2017 / RS / 4 / Shanghai/Beijing / Corporate/Leisure/MICE

RS: Roadshow/ CE: Client Event/ TS: Trade show

LEISURE TRAVEL

Australia

Travel to the USA dropped off this quarter due to the outcome of the Presidential Election. Normally Q1 sees a lot of high end ski and family travel but this year business was down as many were “spooked” by the political situation and what dangers it might bring. Travellers were also worried that they may not be allowed in or that they would need to wait in long lines at immigration on arrival. This has had a big effect on older travelers in particular.
The dollar has been strong against the EURO so combined with the above we believe that European travel will be stronger in 2017. Hotels may want to send us some longer stay offers as Australians tend to stay for at least 3 or 4 nights in most places.
It looks like Spain / Italy and the UK will be popular in 2017.
Australians are booking earlier and earlier and we are already getting bookings for June 2018. Hotels should load their rates ASAP until at least end of Q1 2018 in order to secure advance sales.
As always we get many multi-generational/ family booking enquiries. We are compiling a “family travel brochure” and the Excel for completion is in Lanyon. If hotels have not provided details to the Sydney office already on interconnecting / roll away and extra person charges then they should do so as soon as possible so that we can include them

Contact for this market is Carolyn Holmes based in Sydney, Australia

CHINA

The China National Tourism Administration has warned citizens against traveling to South Korea so all travel agencies have removed this destination from their websites.
This yearFrance is thepartner country for China and has introduced Reunion Island with new direct flights from Guangzhou in Q1.
During the Chinese New Yearmost key markets within China recorded aggressive growth. Shanghai, Hangzhou and Hong Kong, as the representatives of the citiesin Southern China, where the weather is warmer, showed increase in both occupancy and ADR.

Contact for this market is Amy Pang based in Shanghai, China

HONG KONG

Travel to Japan has been continuously the top outbound destination for Hongkongnese. Easter (April 14 – 17, 2017) is the next high demand period for family travel so hotels should share any last minute offers they have.
In Q2 2017 there are two public holidays – May 1 & May 3on a Monday & Wednesday so we expect many to take the Tuesday in addition and have a 5 day break. Hotels in Japan, Korea, Thailand and Taiwan should send us any offers as we expect many to take short breaks away. Kindly have these offers available in the GDS and all PHR booking channels for maximum exposure.
LCC (Low cost carriers) like Hong Kong Express offer more direct flights to Japan, Korea, Taiwan and Guam than ever before. Again hotels that are interested in the leisure segment please ensure that all your packages are uploaded and bookable through PH&R channels.
Hotels that offer credit facilities or additional commissions and bonuses to agents in order to get support will get additional promotion among the travel agents in Hong Kong. Please check with us for further clarification should you be interested.
Top destinations are still Japan, Taiwan, Thailand with traffic to the UK growing because of currency depreciation.

Contact for this market is Sylvia Mak based in Hong Kong

INDIA

Indian outbound leisure travel was sluggish in Q1 due to the Government’s demonetization policy and also the increase of the service tax on travel agents / tour operators. This means that any travelers who now bookon hotel websites, OTA’s etc. do not need to pay the tax so there might be an increase through these channels. However there is a positivity heading into Q2 and business is picking up with the school holiday season approaching. If hotels have any offers to encourage Indian travelers they should share with us.
Mid-April through to early July is the primary holiday season for Indian travelers because of the summer school and college vacation. As mentioned above hotels should share their best available rates and packages targeting leisure FIT & family travel as travelers look for best deals during this time. Hotels should also ensure that all rates are loaded on all PH&R booking channels.
With the GBP steadily depreciating against the Rupee in recent months post Brexit there are cheaper airfares and attractive promotional offers from airlines which should lure Indian travelers to the UK as it’s a sought after shopping & holiday destination.
The Greek National Tourism Organization (GNTO) seems to be aggressively targeting the Indian outbound travel segment. They are trying to create awareness as a “must see” destination as its already on the top 5 list of European destinations for Indians. GNTO is working towards promoting Greece as an ideal destination for all travel segments including FIT, MICE, honeymooners, film tourism, weddings and celebrations.Our member hotels in Greece should consider targeting the Indian Market in the key cities of New Delhi and Mumbai to try to secure more sales.
Garuda Indonesia Airlines has commenced thrice-weekly flights from Jakarta to Mumbaivia Bangkok. Since India ranks as the second top inbound market for Bali and sixth for Indonesia our member hotels should also consider targeting the Indian market with offers.
Vietjet a low cost Vietnamese carrier will have non-stop 3 time weekly flights between Ho Chi Minh City and New Delhi from July This will be the first direct connection linking the 2 countries so should drive visitor arrivals to / from key cities in both countries across all market segments.
Since most Indian leisure business is still booked via travel agencies , wholesalers and tour operators should consider attending the India Roadshows in 2017 to meet with the travel trade to help promote your property.

Contact for this market is Gaurav Sindhwani based in New Delhi, India

JAPAN

The Japan National Tourism Organization (JNTO) announced that the estimated number of Japanese overseas travelers in January was 1.3 million and increase of nearly 2% over 2016. Taiwan, Hong Kong and Macau all saw a decrease in January with Taiwan travel decreasing for the first time since September 2015. Travel to South Korea and Vietnam increased as did travel to resort destinations like Hawaii which had a 7% improvement.
The Japanese government believe as of February that "the Japanese economy is in moderate recovery”. In the short term they also expressed that "the economy would recover with government support” and that “employment and peoples income would improve” however uncertain international economies could still have an effect and this could change.
According to JNTOthe estimated number of inbound travelers to Japan in January reached 2.3million which was a 25% increase yeay on year. Travellers from China increased 32% travelelrs from Taiwan increased by 9% , from Hong Kong there was a 48% increase versus Janaury 2016. Travellers from South Korea increased to a record high with more than 625,000 visitors to Japan meaning that these four East Asian countries had a 78% market share of inbound travel to Japan.
The big Golden Week holidays start from from May 3rd to May 7th but many also take May 1 and 2 off to get 9 consecutive days vacation. People will travel to both short & long haul destinations so please share any offers with us.
A “Premium Friday” campaign was recently trialled in Tokyo suggesting that people should finish work early on the last Friday of each month to shop, dine out and take part in other evening activities. It was succesful so will now be rolled out across Japan commencing in April. According to the research by Hakuhodo the number one reason to take advantage of the early closing was to travel so many major travel agencies are promoting “ Premium Friday tours” featuring short-haul destinations.
Terrorism incidents and volatile political situations have been a concern in Q1 and have demotivated some Japanese leisure travelers from traveling abroad especially to Europe. If hotels have any special offers to encourage travelers then please share with us for distribution.
Just to remind member hotels that the main wholesaler brochures are issued twice a year. (April-Oct and then Oct – March). It is critical that member hotels have a year round contract with the local tour operators handling the Japanese market to capture business in the leisure segment. Once the year round contract is established the local tour operators will accept promotional offers as well, such as bonus nights, meal included offers during the off season.
Please contact if any member hotels have promotional offers so that Japan office can promote.

Contact for this market is Hideki Seguro based in Tokyo, Japan

SOUTH KOREA

With a long weekend in the first week of May flights are already fully booked to places such as Danang, Guam, Kota Kinabalu, Japan and Hawaii so hotels should be aware.
Aero Mexico will operate direct flightsbetween Incheon and Mexico City five times a week from May so hotels should expect more visitors particularly with the honeymoon segment.
Due to the location of THAAD(Terminal High Altitude Area Defense Missile) in Korea the China government banned travel to Korea. Because of safety reasons Koreantravel agents reduced shopping tour programmes as well. New shopping tours are now being scheduled for Japan, Vietnam and Thailand.
To cover the shortage of the China inbound market most travel agents, airlines and hotels are now focused on Hong Kong, Singapore, Thailand and Japan.
Indonesia Tourism Board opened in Korea and have started to promote here. Currently only Bali is popular but we hope travel to other less known destinations will also increase.

Contact for this market is Alice Choi based in Seoul, South Korea

SOUTH EAST ASIA

The mid-year school holidays is a one month long peak travel season for the leisure segment. Families will take time out to travel together so hotels should ensure all promotional offers applicable to families and multigenerational travel are available/bookable on all PH&R channels.

The recent consumer fair reported an increase in interest for Central Europe with the Balkans especially popular and an increased awareness also of Spain & Portugal. Any member hotels please ensure packages are loaded and available in PH&R booking engines.
AirAsia X has confirmed they will fly 4 times weekly between Kuala Lumpur and Honolulu via Kansai [Japan] from 28 June. Outbound agents are excited about what this will bring as currently no other Malaysian carrier flies to the US. Hotels in Honolulu may want to engage with local DMCs that specialize in groups as Malaysia & Japan will now be a target geographical segment.
With another 5 long weekends in 2017, i.e., 14 April, 1 May, 25 June and 1 Sept, Singaporeans are planning their trips in advanceespecially for Asian destinations. Hubs like Bangkok, Hong Kong, Taipei & Seoul are popular as these cities offer plenty of options for shopping and food. Hotels that are targeting this group of travelers please ensure packages are loaded and available/bookable on all PH&R channels.

Contact for this market is Steven Fam based in Singapore

COrporate/Business Travel

AUSTRALIA

Corporate travel is now back to normal after the long summer break so hotels should see the booking pattern return to normal for this segment
Domestic / New Zealand travel continues to make up at least 70% of this segment so hotels should be aware that growth is limited until the mining segment recovers
A global agreement has just been signed between Preferred Hotels and Resorts and FCM Travel Solutions so this should help to increase sales against their consortia hotel programme rate code CONFCI.. If hotels have not participated in the past then they may wish to consider this year as PH chain coded hotels will now get “platinum” visibility and will have “top billing” within the GDS. In some cities hotels may also be invited to join “Smartstay” which increases their GDS positioning right to the top and also shows them on a Smartstay mobile app. Please check with Preferred Sydney office Carolyn Holmes for further information